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Browse Glossary :
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Frequently Searched Terms
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Definition of Underpayment Penalty
Underpayment PenaltyAn "underpayment penalty" is a tax penalty issued to an individual who does not pay enough of his or her estimated tax. A penalty may be owed if 100% of last year's taxes and at least 90% of this year is not paid to the IRS.
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| I-Bonds |
| "I-Bonds" or "inflation bonds" are U.S. Treasury savings bonds with indexed to try to take account... more |
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| Identity Theft |
| "Identity theft" is the deliberate assumption of another person's identity, usually to gain... more |
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| IDR |
| An "international depository receipt" or "IDR" is a certificate issued by a bank as evidence of... more |
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| IMM |
| The "International Monetary Market" or "IMM" is a centralized market in Chicago where currency,... more |
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| Impaired Credit |
| "Impaired credit" refers to the situation where a company's or an individual's financial... more |
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| Imputed Interest |
| "Imputed interest" is interest that is considered to have been paid although no actual payment was... more |
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| In the Money Options |
| The phrase "in the money option" refers to a stock option where the market price of the underlying... more |
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| Incentive Stock Option |
| An "incentive stock option" or "ISO" is a stock option that has met certain requirements specified... more |
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| Income |
| The term "income" generally refers to the money earned by individuals or companies. For... more |
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| Income Bond |
| An "income bond" is a bond that only pays interest if the corporation has enough earnings. These... more |
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| Income Fund |
| An "income fund" is a mutual fund whose goal is to provide an income from investments, typically in... more |
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| Income Property |
| "Income property" refers to real estate purchased for the purpose of generating... more |
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| Income Statement |
| "Income statement" is an accounting statement showing revenues, expenses, and net income of a... more |
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| Income Tax |
| "Income tax" is a tax based on income earned by an individual or company. The taxpayer typically... more |
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| Income Verification |
| The term "income verification" refers to the process whereby a lender confirms the income of a... more |
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| Incorporation |
| "Incorporation" is a legal process through which a corporation is created. Usually, a corporation... more |
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| Indemnification |
| Indemnification is the legal right to be reimbursed pursuant to an indemnity for damage or loss... more |
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| Indemnity |
| "Indemnity" is a contract whereby one party agrees to compensate a second party for any damages or... more |
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| Indenture |
| An "indenture" is a legal document setting forth the specifics of a bond issuance, and setting... more |
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| Independent Contractor Agreement |
| An "independent contractor agreement" is a contract between two parties where the "contractor"... more |
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| Index Fund |
| An "index fund" is a mutual fund that is designed to match the returns of a particular stock market... more |
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| Index Option |
| An "index option" refers to call and put option contracts traded on an underlying index, such as... more |
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| Individual Retirement Account |
| An "individual retirement account" or "IRA" is a federally sanctioned retirement account for... more |
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| Inflation |
| "Inflation" refers to a general increase in the prices of goods and services. Over time, inflation... more |
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| Inflation Bonds |
| "Inflation bonds" or "I-Bonds" are U.S. Treasury savings bonds indexed to try to take account of... more |
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| Inheritance |
| "Inheritance" refers to the passing of assets and liabilities to heirs or persons identified in a... more |
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| Inheritance Tax |
| An "inheritance tax" is a tax based on the value of property in an estate of a deceased individual.... more |
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| Initial Public Offering |
| An "initial public offering" or "IPO" is the process of a private company first selling its stock... more |
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| Insider Information |
| The term "insider information" refers to relevant material information about a publicly traded... more |
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| Insider Trading |
| "Insider trading" is the buying or selling of a security by a person (e.g., an officer, director,... more |
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| Insolvency |
| "Insolvency" describes a financial condition experienced by a person or business when assets no... more |
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| Installment Account |
| An "installment account" is an account that has a set regular payment, typically every month. Auto... more |
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| Installment Debt |
| An "installment debt" is a debt that has a set regular payment, typically every month. Auto loans... more |
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| Installment Sale |
| An "installment sale" is a transaction in which the sale price is paid in installments. The term... more |
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| Instinet |
| "Instinet" is a stock exchange allowing members to display bid and offer quotes for stocks, and to... more |
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| Institutional Fund |
| An "institutional fund" is a type of mutual fund catering primarily to institutional investors,... more |
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| Institutional Investor |
| An "institutional investor" is a financial institution such as a mutual fund, bank, insurance... more |
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| Institutional Shares |
| "Institutional shares" refer to a class mutual fund shares that are available to large... more |
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| Insurance |
| "Insurance" protects against loss or damage, the insured makes periodic payments to an insurer, and... more |
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| Insurance Agent |
| An "insurance agent" is a person who is authorized by an insurance company to sell... more |
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| Insurance Broker |
| An "insurance broker" is a professional broker who represents the interest of the buyer in... more |
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| Insurance Claim |
| An "insurance claim" is a claim for reimbursement of a loss or damage pursuant to the coverage... more |
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| Insurance Policy |
| An "insurance policy" is a contract providing for coverage of loss or damage to person or property,... more |
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| Insurance Premium |
| An "insurance premium" is the payment made by an insured under the terms of an insurance... more |
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| Insured |
| An "insured" is the person(s) or property covered by an insurance... more |
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| Inter-Vivos Trust |
| An "inter vivos trust" is a trust that an individual establishes while he or she is alive, enabling... more |
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| Interest |
| "Interest" is the price paid for borrowing money. For example, a 5% annual interest rate on a $1000... more |
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| Interest Deduction |
| "Interest deduction" is an interest expense that is allowed as a tax deduction for tax purposes.... more |
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| Interest Only Mortgage |
| An "interest only mortgage" is a real estate loan in which only the interest is payable at regular... more |
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| Interest Rate |
| An "interest rate" is the amount of interest charged, usually characterized as a percentage of the... more |
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| Interest Rate Cap |
| An "interest rate cap" is an interest rate ceiling in a loan where the interest rate can not exceed... more |
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| Interest Rate Options |
| "Interest rate options" are option contracts that are based upon underlying debt instruments. ... more |
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| Interest-Only Loan |
| An "interest-only loan" is a loan in which payment of principal is deferred until maturity, and the... more |
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| Interest-Only Mortgage |
| An "interest-only mortgage" is a mortgage in which payment of principal is deferred until maturity,... more |
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| Internal Rate of Return |
| The "internal rate of return" or "IRR" is the discount rate often used in capital budgeting to... more |
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| Internal Revenue Code |
| The "Internal Revenue Code" contains the various statutes that make up the U.S. federal... more |
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| Internal Revenue Service |
| The "Internal Revenue Service" or "IRS" is the US Treasury Department agency responsible for... more |
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| International Bond |
| "International bonds" are bonds that are issued by an entity or company in a country where they are... more |
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| International Depository Receipt |
| An "international depository receipt" or "IDR" is a certificate issued by a bank as evidence of... more |
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| International Fund |
| An "international fund" is a mutual fund investing in securities of countries other than the United... more |
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| International Monetary Market |
| The "International Monetary Market" or "IMM" is a centralized market in Chicago where currency,... more |
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| Intestacy |
| "Intestacy" is the situation where a person dies without having made a valid will. Intestacy law... more |
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| Intestate |
| "Intestate" refers to dying without a will or without a... more |
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| Intraday |
| The term "intraday" means "within the day." The term is often used when stating the high and low... more |
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| Intrastate Offering |
| An "intrastate offering" is an offering of securities solely to residents of one state, structured... more |
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| Inverted Yield Curve |
| An "inverted yield curve" is the unusual situation where long term debt instruments have a lower... more |
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| Investment Bank |
| An "investment bank" is a financial services company that gives advice to companies, assists them... more |
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| Investment Banker |
| An "investment banker" is a person with an investment bank that gives advice to companies, assists... more |
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| Investment Company |
| An "investment company" is a company (corporation, LLC, trust, or partnership) that is primarily... more |
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| Investment Company Act of 1940 |
| The "Investment Company Act of 1940" is the federal law that regulates investment companies... more |
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| Investment Grade Bonds |
| "Investment grade bonds" are high-quality bonds rated as investment grade by one of the credit... more |
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| Investment Income |
| "Investment income" is income that is generated from securities and other investments, such as... more |
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| Investment Real Estate |
| "Investment real estate" is real property held for investment, as opposed to property used for... more |
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| Investor |
| An "investor" is someone who commits capital in order to gain financial returns from the... more |
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| Investors Rights Agreement |
| An "investor rights agreement" is a contract typically used by venture capitalists in connection... more |
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| Invoice |
| An "invoice" is a bill or list of charges for services rendered or products sold. For example, an... more |
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| IPO |
| An "initial public offering" or "IPO" is the process of a private company first selling its stock... more |
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| IPO Lock-Up |
| An "IPO lock-up" is a contract with certain investors in a company in connection with its IPO. A... more |
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| IRA |
| An "individual retirement account" or "IRA" is a federally sanctioned retirement account for... more |
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| IRR |
| The "internal rate of return" or "IRR" is the discount rate often used in capital budgeting to... more |
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| Irrevocable Beneficiary |
| The term "irrevocable beneficiary" often refers to a beneficiary whose rights to the proceeds of an... more |
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| Irrevocable Letter of Credit |
| An "irrevocable letter of credit" is a letter of credit that can not be cancelled by the issuing... more |
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| Irrevocable Proxy |
| An "irrevocable proxy" is an authorization to a person to act on behalf of another party with... more |
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| Irrevocable Trust |
| An "irrevocable trust' is a trust that can not be amended or... more |
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| IRS |
| "IRS" stands for the Internal Revenue Service, the US Treasury Department agency responsible for... more |
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| ISO |
| An "incentive stock option" or "ISO" is a stock option that meets certain requirements specified by... more |
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| Issuer |
| An "issuer" is an entity, such as a corporation, municipality, or government, that issues or... more |
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| Itemized Deduction |
| "Itemized deductions" are amounts paid by an individual taxpayer for personal and certain business... more |
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| Joint Account |
| A "joint account" is an account shared by two or more... more |
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| Joint and Several |
| The term "joint and several" generally refers to a liability which allows a creditor to sue any one... more |
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| Joint Tax Return |
| A "joint tax return" is a tax return filed by two people, typically... more |
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| Joint Tenants in Common |
| "Joint tenants in common" refers to the ownership of property by two or more individuals. A... more |
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| Joint Tenants with Right of Survivorship |
| A "joint tenancy with right of survivorship" or "JTWROS" refers to the ownership of property by two... more |
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| Joint Venture |
| A "joint venture" is an arrangement by two or more parties to pursue a particular business... more |
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| JTWROS |
| A "joint tenancy with right of survivorship" or "JTWROS" refers to the ownership of property by two... more |
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| Judgment |
| A "judgment", in the legal context, is the decision of a court upon the respective rights and... more |
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| Jumbo CD |
| A "jumbo CD" is a certificate of deposit with a minimum denomination of $100,000. Jumbo CDs are... more |
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| Jumbo Loan |
| A "jumbo loan" or "jumbo mortgage" is a mortgage loan that exceeds the limits set by Fannie Mae... more |
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| Jumbo Mortgage |
| A "jumbo mortgage" or "jumbo loan" is a mortgage loan that exceeds the limits set by Fannie Mae... more |
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| Junior Mortgage |
| A "junior mortgage" is a mortgage loan whose security interest is subordinate to a senior... more |
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| Junior Security |
| A "junior security" is a security that has a lower-priority claim on a company's assets and... more |
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| Junk Bond |
| A "junk bond" or "high yield bond" is a bond with a speculative investment rating from the credit... more |
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| Keogh Plan |
| A "Keogh Plan" is a type of pension account in which taxes are deferred, for those who are... more |
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| Key Man Insurance |
| "Key man insurance" is a life insurance policy purchased by a company to insure the life of a key... more |
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| Know Your Customer |
| The "know your customer" concept applies to securities brokers, in that an adviser who recommends... more |
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| Land |
| "Land" is real property, which consists of the surface of the earth, including the sub surface and... more |
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| Land Value |
| "Land value" refers to the actual value of the land on which a property sits. This does not include... more |
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| Landlord |
| A "landlord" is an owner of real property who rents all or a portion of the property to a tenant.... more |
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| Large Cap Stocks |
| "Large cap stocks" typically refers to stocks of publicly traded companies who have a market... more |
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| Last In, First Out |
| "Last in, first out" or "LIFO" is an accounting method based on the premise that the newest... more |
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| Last Trading Day |
| The term "last trading day" refers to the last day that an options or futures or contract may trade... more |
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| Late Charge |
| A "late charge" is a fee charged by a lender or creditor when a payment owed is made after the due... more |
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| Late Fee |
| A "late fee" is a fee charged by a lender or creditor when a payment owed is made after the due... more |
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| Late Payment |
| A "late payment" is a payment that is made after the date that it was due. Late charges are... more |
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| LBO |
| A "leveraged buy out" or "LBO" is a transaction typically involving a public corporation being... more |
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| Lease |
| A "lease" is a contract providing for the rental of property for a specified term with designated... more |
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| Leaseback |
| A "leaseback" is a business transaction whereby an asset is simultaneously sold and leased back to... more |
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| Leasehold Improvement |
| "Leasehold improvements" are expenses incurred for the permanent improvements to rented facilities.... more |
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| Lender |
| A "lender" is an individual, entity, or financial institution, who provides the funds for a loan.... more |
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| Lessee |
| A "lessee" is a person or entity that leases real or personal property from the owner of that... more |
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| Lessor |
| A "lessor" is an owner of real or personal property who leases that property to a user of the... more |
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| Letter of Credit |
| A "letter of credit" is a form of guarantee of payment by a bank or financial institution. Letters... more |
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| Letter of Intent |
| A "letter of intent" is a document where two or more parties set forth an indication of interest in... more |
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| Letter Stock |
| The term "letter stock" refers to stock that has not been registered with the Securities and... more |
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| Leverage |
| "Leverage" is the process of incurring debt in order to continue or expand the scope of a business.... more |
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| Leveraged Buy Out |
| A "leveraged buy out" or "LBO" is a transaction typically involving a public corporation being... more |
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| Leveraged Lease |
| A "leveraged lease" is a lease where the lessor purchases the asset with part of the consideration... more |
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| Liability |
| "Liability" generally refers to a legal responsibility, obligation, or debt. Examples of... more |
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| LIBOR |
| The "London Interbank Offered Rate" or "LIBOR" is the rate of interest that major international... more |
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| License Agreement |
| A "license agreement" gives a person or entity the right to use someone else's assets. A... more |
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| Lien |
| A "lien" is a security interest in an asset or property, protecting a lender or creditor's loan... more |
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| Life Insurance |
| "Life insurance" refers to a contract policy that pays a monetary sum to the insured person's... more |
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| LIFO |
| "Last in, first out" or "LIFO" is an accounting method based on the premise that the newest... more |
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| Like-Kind Property |
| "Like-kind property" is a term used in the context of tax deferred exchanges of real property under... more |
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| Limit Order |
| A "limit order" refers to an order to buy a stock at or below a designated price, or to sell a... more |
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| Limited Liability Company |
| A "limited liability company" or "LLC" is a form of business organization authorized by state law.... more |
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| Limited Partnership |
| A "limited partnership" is an entity formed under state law that includes one or more general... more |
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| Limited Partnership Agreement |
| A "limited partnership agreement" is a contract among the general and limited partners of a limited... more |
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| Limited Warranty |
| A "limited warranty" is a contractual promise by a manufacturer or seller of goods or services,... more |
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| Line of Credit |
| A "line of credit" is a pre-established loan agreement between a bank or financial institution and... more |
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| Liquid Yield Option Note |
| A "Liquid Yield Option Note" or "LYON" is a zero-coupon bond issued by a corporation, which also... more |
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| Liquidate |
| "Liquidate" refers to the process of selling securities or assets to obtain cash. For example, one... more |
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| Liquidation |
| The term "liquidation" in connection with finance and business often has two meanings: (1)... more |
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| Liquidation Rights |
| "Liquidation rights" refers to the rights of a security holder in the event of a liquidation of a... more |
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| Listed Option |
| A "listed option" is a put or call option that is traded on a national options exchange. Listed... more |
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| Listed Security |
| A "listed security" is a stock or bond that has been authorized for trading on a stock exchange.... more |
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| Listed Stock |
| A "listed stock" is a stock that has been approved and listed for trading on a stock... more |
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| Listing Broker |
| "Listing broker" refers to the real estate broker who is responsible for the listing of a property... more |
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| Listing Requirements |
| "Listing requirements" are the rules of eligibility that a corporation must meet before its stock... more |
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| Living Trust |
| A "living trust" is a trust that an individual establishes while he or she is alive, enabling the... more |
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| Living Will |
| A "living will" is a legal document setting forth the kind of medical care a person wants or... more |
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| LLC |
| A "limited liability company" or "LLC" is a form of business organization authorized by state law.... more |
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| Load Fund |
| A "load fund" is a mutual fund that charges a fee for either purchase or sales of its... more |
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| Load Mutual Fund |
| A "load mutual fund" is a mutual fund that charges a fee for either purchase or sales of its... more |
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| Loan |
| A "loan" is an arrangement where a sum of money is borrowed from one party (the "lender") with a... more |
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| Loan Commitment |
| A "loan commitment" is a written promise by a lender to make a loan under specified terms and... more |
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| Loan Officer |
| A "loan officer" is a representative of a lending institution who is empowered to act on behalf of... more |
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| Loan Origination Fee |
| A "loan origination fee" is a fee charged by a lender for making a loan. Such a fee is often... more |
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| Loan Processing Fee |
| A "loan processing fee" is a fee charged by some lenders in order to process a loan... more |
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| Loan Syndication |
| A "loan syndication" refers to a group of banks or other lenders coming together to make one large... more |
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| Loan to Value Ratio |
| A "loan to value ratio" is the ratio of money borrowed on a property to the property's fair... more |
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| Lock-in |
| A "lock-in" refers to a commitment from a lender guaranteeing g a specified interest rate for a... more |
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| Lock-Up Agreement |
| A "lock-up agreement" is a contractual commitment between the underwriters and insiders of a... more |
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| LOI |
| An "LOI" or "letter of intent" is a document where two or more parties set forth an indication of... more |
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| London Interbank Offered Rate |
| The "London Interbank Offered Rate" or "LIBOR" is the rate of interest that major international... more |
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| Long Bond |
| A "long bond" generally refers to a 30 year U.S.... more |
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| Long Position |
| A "long position" is an investment in a security where the investor owns the security and expects... more |
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| Long Term Capital Gain |
| "Long capital term gain" is the profit on the sale of the capital asset (such as stocks or real... more |
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| Long Term Gain |
| "Long term gain" is the profit on the sale of the capital asset (such as stocks or real estate)... more |
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| Low Documentation Loan |
| A "low documentation loan" is a mortgage that requires only minimal verification of income and... more |
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| Lump-Sum Distribution |
| A "lump sum distribution" is a distribution from a 401(k) retirement plan that includes the entire... more |
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| LYON |
| A "Liquid Yield Option Note" or "LYON" is a zero-coupon bond issued by a corporation, which also... more |
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| Make a Market |
| "Make a market," in reference to securities, is where securities broker-dealers quote prices at... more |
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| Managed Account |
| A "managed account" is a securities portfolio managed by a professional investment... more |
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| Managed Money |
| The term "managed money" refers to the situation where an investor uses an investment professional... more |
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| Management Buyout |
| A "management buyout" or "MBO" is a leveraged buyout (LBO) in which the acquirer is led by the... more |
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| Managing Underwriter |
| A "managing underwriter" is the leading investment banking firm in an underwriting group and acts... more |
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| Margin Account |
| A "margin account" is a securities brokerage account that can hold deposited cash and securities,... more |
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| Margin Call |
| A "margin call" is the demand by a securities brokerage firm to a customer for additional funds or... more |
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| Marginal Tax Rate |
| The "marginal tax rate" is the additional tax a taxpayer would pay if he or she earned one more... more |
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| Marital Deduction |
| The "marital deduction" is the deduction allowed by the Internal Revenue Code for estate and gift... more |
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| Marital Property |
| "Marital property" generally refers to property earned or acquired by either spouse during the... more |
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| Mark to Market |
| The term "mark to market" refers to a procedure to adjust the carrying value of a security or... more |
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| Market Capitalization |
| "Market capitalization" is the total value of all corporate shares outstanding. For public... more |
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| Marketable Securities |
| "Marketable securities" are stocks, bonds or other securities that can be quickly converted to cash... more |
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| Master Limited Partnership |
| A "master limited partnership" or "MLP" is a publicly traded limited partnership, such as oil and... more |
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| MasterCard |
| "MasterCard" refers to MasterCard Incorporated, an organization owned by the public and financial... more |
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| Maturity |
| In reference to finance transactions, "maturity" is the date on which a loan or bond becomes due... more |
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| Maturity Date |
| "Maturity date" typically refers to the date the principal amount of a bond, loan or other debt... more |
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| MBO |
| A "management buyout" or "MBO" is a leveraged buyout (LBO) in which the acquirer is led by the... more |
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| Medicaid |
| "Medicaid" is a program sponsored by the federal government and administered by states that is... more |
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| Medicare |
| "Medicare" refers to a program of health insurance for persons over 65, some disabled people under... more |
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| Medium Term Note |
| A "medium term note" or "MTN" is a debt obligation with a typical term of 5-10... more |
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| Merc, The |
| "The Merc" is shorthand for the Chicago Mercantile... more |
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| Merger |
| A "merger" is the combination of one company with another, typically through an acquisition. In a... more |
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| Merger Account |
| A "merger account" is an account where stocks can be purchased for cash and a loan. The loan is... more |
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| Merger Agreement |
| A "merger agreement" is a contract whereby one company merges its business with another company.... more |
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| Micro Cap Stock |
| "Micro cap stock" typically refers to the stock issued by companies having a market capitalization... more |
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| Mid-Cap Stock |
| A "mid-cap stock" typically refers to the stock issued by companies whose market capitalization is... more |
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| Middle Office |
| In a financial services company, the middle office typically includes risk management, calculation... more |
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| Midnight Dividend |
| A midnight dividend is a dividend paid just before a company goes public, typically funded by debt,... more |
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| Mileage Allowance |
| "Mileage allowance" typically refers to the fixed mileage limit under a car lease. If the limit is... more |
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| MLP |
| A "master limited partnership" or "MLP" is a publicly traded limited partnership, such as oil and... more |
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| MLS |
| The "MLS" or "Multiple Listing Service" is a service created and run by real estate professionals... more |
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| Momentum Investing |
| "Momentum investing" refers to the strategy of buying stocks that have a strong upward price... more |
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| Money Management |
| "Money management" refers to the process of budgeting, saving, or investing of the cash of an... more |
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| Money Manager |
| A "money manager" is a professional who is responsible for a portfolio of securities. In return for... more |
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| Money Market Account |
| A "money market account" is an account (such as a bank account or brokerage account) that pays... more |
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| Money Market Fund |
| A "money market fund" is a mutual fund that invests only in short term securities, such as... more |
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| Money Order |
| A "money order" is a financial instrument backed by a deposit of cash, and which can easily be... more |
| | |
| Moodys Rating |
| "Moody's ratings" are opinions of the credit rating agency Moody's Corporation of the... more |
| | |
| Mortgage |
| A "mortgage" is a loan secured by specified real property, and which requires the borrower to make... more |
| | |
| Mortgage Banker |
| A "mortgage banker" is an entity or individual that originates mortgage loans and sells them to... more |
| | |
| Mortgage Broker |
| A "mortgage broker" is an entity or individual that places mortgage loans with lenders, but does... more |
| | |
| Mortgage Interest Deduction |
| The "mortgage interest deduction" is the federal tax deduction for interest paid on a mortgage used... more |
| | |
| Mortgage Interest Expense |
| The phrase "mortgage interest expense" refers to interest paid on a mortgage loan that is fully... more |
| | |
| Mortgage Life Insurance |
| "Mortgage life insurance" is a life insurance policy that pays off the remaining balance of the... more |
| | |
| Mortgage Rate |
| A "mortgage rate" is the interest rate on a... more |
| | |
| Mortgage Refinance |
| A "mortgage refinance" is a new mortgage loan used by the borrower to pay off an old mortgage loan.... more |
| | |
| Mortgage REIT |
| A "mortgage REIT" is a real estate investment trust that invests in loans secured by real estate,... more |
| | |
| Mortgage-Backed Securities |
| "Mortgage backed securities" are securities backed by a pool of mortgage... more |
| | |
| Mortgagee |
| The "mortgagee" refers to the lender of funds in connection with a mortgage loan. The borrower is... more |
| | |
| Mortgagor |
| A "mortgagor" is the borrower of a loan secured by real... more |
| | |
| MTN |
| An "MTN" or "medium term note" is a debt obligation with a typical term of 5-10... more |
| | |
| Multiple Listing Service |
| The "Multiple Listing Service" or "MLS" is a service created and run by real estate professionals... more |
| | |
| Municipal Bond |
| "Municipal bonds" are bonds issued by state or local governmental units. Interest on the bonds... more |
| | |
| Municipal Bond Fund |
| A "municipal bond fund" is a mutual fund that invests primarily in bonds and debt securities issued... more |
| | |
| Municipal Bond Insurance |
| "Municipal bond insurance" is an insurance policy which guarantees payment on municipal bonds in... more |
| | |
| Mutual Fund |
| A "mutual fund" is an investment pool managed by a professional investment company. A mutual fund... more |
| | |
| Naked Call |
| A "naked call" is the writing (selling) of a call option without ownership of the underlying... more |
| | |
| Naked Option |
| A "naked option" is the writing (selling) of a call or put option without ownership of the... more |
| | |
| Naked Position |
| The term "naked position" refers to a securities investment that is not hedged from market risk. ... more |
| | |
| Naked Put |
| A "naked put" is the writing (selling) of a put option without ownership of the underlying... more |
| | |
| NASD |
| The "National Association of Securities Dealers" or the "NASD" is a nonprofit, self-regulatory... more |
| | |
| NASDAQ |
| "NASDAQ" or the "National Association of Securities Dealers Automatic Quotation System" is an... more |
| | |
| NASDAQ 100 Index |
| The "NASDAQ 100 Index" is an index that tracks the 100 largest stocks listed by the Nasdaq... more |
| | |
| NASDAQ Composite Index |
| The "NASDAQ Composite Index" is a market-capitalization weighted index of the more than 5,000... more |
| | |
| NASDAQ National Market |
| The "NASDAQ National Market" is a market that consists of over ,3000 companies that have an... more |
| | |
| National Association of Securities Dealers |
| The "National Association of Securities Dealers" or the "NASD" is a nonprofit, self-regulatory... more |
| | |
| National Debt |
| The term "national debt" refers to the debt owed by the U.S. government, including T-bills, bonds,... more |
| | |
| NAV |
| "NAV" stands for "net asset value." In connection with reference to mutual funds, NAV is typically... more |
| | |
| Negative Amortization |
| "Negative amortization" refers to a loan repayment schedule where the outstanding principal balance... more |
| | |
| Negative Cash Flow |
| "Negative cash flow" refers to a situation where a business is spending more than it is... more |
| | |
| Net Asset Value |
| "Net Asset Value" or "NAV", in connection with reference to mutual funds, is typically defined to... more |
| | |
| Net Income |
| "Net income" typically refers to a company's revenues minus its expenses. Net income is also... more |
| | |
| Net Lease |
| A "net lease" is a lease under which the lessee is responsible for all property taxes, insurance,... more |
| | |
| Net Loss |
| The term "net loss" refers to the financial situation where the total expenses of an enterprise... more |
| | |
| Net Operating Loss |
| A "net operating loss" or "NOL" is a tax term for the excess of business expenses over income in a... more |
| | |
| New York Stock Exchange |
| The "New York Stock Exchange" or "NYSE" is one of the major stock markets in the United States. The... more |
| | |
| Nikkei |
| "Nikkei" refers to the main index for the Tokyo stock... more |
| | |
| No Documentation Loan |
| A "no documentation loan" is a mortgage where the applicant provides minimal information and... more |
| | |
| No-Load Fund |
| A "no-load fund" is a mutual fund that does not charge a sales commission, although it can charge... more |
| | |
| No-Par Value Stock |
| "No par value stock" is stock without a designation of par value in the company's charter. ... more |
| | |
| NOL |
| A "net operating loss" or "NOL" is a tax term for the excess of business expenses over income in a... more |
| | |
| Non-Competition Agreement |
| A "non-competition agreement" is a contract between one party who agrees not to compete with the... more |
| | |
| Non-Disclosure Agreement |
| A "non-disclosure agreement" is a contract that contemplates one party disclosing proprietary or... more |
| | |
| Non-Qualified Stock Option |
| A "non-qualified stock option" or "NSO" is a stock option which does not qualify for the special... more |
| | |
| Nontaxable Dividends |
| The term "nontaxable dividends" refers to dividends that are not taxed to the recipient. An... more |
| | |
| Not Sufficient Funds Check |
| A "not sufficient funds check" or "NSF" is a check drawn on a financial institution with... more |
| | |
| NSF |
| A "NSF" is a check drawn on a financial institution with insufficient funds in an account to cover... more |
| | |
| NSO |
| A "non-qualified stock option" or "NSO" is a stock option which does not qualify for the special... more |
| | |
| NYSE |
| The "New York Stock Exchange" or "NYSE" is one of the major stock markets in the United States. The... more |
| | |
| NYSE Composite Index |
| The "NYSE Composite Index" is a market value weighted index that tracks all of the common stocks on... more |
| | |
| Obligor |
| An "obligor" is the person or entity required to perform on a debt or obligation. In loan... more |
| | |
| OCC |
| The "Options Clearing Corporation" or "OCC" is the world's largest equity derivatives clearing... more |
| | |
| Odd Lot |
| An "odd lot" is a trading order for less than 100 shares of... more |
| | |
| Off-Balance Sheet Financing |
| "Off balance sheet financing" refers to a form of financing which is structured so as to not... more |
| | |
| Offering |
| The term "offering" refers to the offering of an issue of securities or bonds presented for sale. ... more |
| | |
| Offering Circular |
| An "offering circular" is the document substantially similar to a prospectus used for securities... more |
| | |
| Offering Memorandum |
| An "offering memorandum" is a document setting forth the terms of a private placement securities... more |
| | |
| Office Lease |
| An "office lease" is a legal contract where one party (typically referred to as the "landlord" or... more |
| | |
| Official Statement |
| An "official statement" is a securities document describing the offering of a municipal security,... more |
| | |
| OID |
| An "original issue discount" or "OID" refers to a bond or other debt security that is issued at... more |
| | |
| Online Broker |
| An "online broker" is a stockbroker who has an online system for customers to buy and sell... more |
| | |
| Online Contract |
| An "online contract" is a contract that governs the use of a Web site by viewers of the site. The... more |
| | |
| Open End Fund |
| An "open end fund" or "open end mutual fund" is the most common type of mutual fund. Investors may... more |
| | |
| Open End Mutual Fund |
| An "open end mutual fund" or "open end fund" is the most common type of mutual fund. Investors may... more |
| | |
| Opening Bell |
| An "opening bell" is a bell that rings to signify the day's start of trading on a stock... more |
| | |
| Operating Lease |
| An "operating lease" is a lease that is not a capital or finance lease. An operating lease usually... more |
| | |
| Operating Margin |
| "Operating margin" is the ratio of operating income divided by sales revenue, expressed as a... more |
| | |
| Option |
| An "option" gives the holder of the option the right, but not the obligation, to buy or sell an... more |
| | |
| Option Agreement |
| An "option agreement" is a contract giving the option holder the right to acquire an asset on... more |
| | |
| Options Backdating |
| "Options backdating" refers to the granting an option that is dated prior to the date that the... more |
| | |
| Options Clearing Corporation |
| The "Options Clearing Corporation" or "OCC" is the world's largest equity derivatives clearing... more |
| | |
| Options Contract |
| The term "options contract" refers to one option contract representing 100 shares of the underlying... more |
| | |
| Ordinary and Necessary Expenses |
| The phrase "ordinary and necessary expenses" is a tax term relating to what is allowable as a tax... more |
| | |
| Ordinary Annuity |
| An "ordinary annuity" refers to a series of equal payments over a fixed number of... more |
| | |
| Ordinary Income |
| "Ordinary income" is income subject to taxation at full or ordinary rates rather than at favorable... more |
| | |
| Ordinary Loss |
| An "ordinary loss" refers to a loss for tax purposes that is not a capital loss and that is fully... more |
| | |
| Original Issue Discount |
| An "original issue discount" or "OID" refers to a bond or other debt security that is issued at... more |
| | |
| Origination |
| "Origination" in the loan context refers to a process whereby the lender or its agent handles the... more |
| | |
| Origination Fee |
| The term "origination fee" refers to a fee charged by a lender in connection with making a loan. ... more |
| | |
| Origination Points |
| The term "origination points" refers to a fee charged by a lender in connection with making a loan.... more |
| | |
| OTC |
| The term "OTC" or "over-the-counter" refers to a market in which security transactions are... more |
| | |
| OTC Bulletin Board |
| The "OTC Bulletin Board" or "Over-the-Counter Bulletin Board" refers to an electronic trading... more |
| | |
| Out of the Money |
| The phrase "out of the money" refers to either (1) a call option whose exercise price is above the... more |
| | |
| Out-of-Pocket Expenses |
| "Out-of-pocket expenses" refers to direct outlays of cash. Companies will often reimburse... more |
| | |
| Outsourcing |
| The term "outsourcing" refers to the concept of paying an outside company to handle internal... more |
| | |
| Outstanding Shares |
| "Outstanding shares" are shares of a corporation that are issued and held by... more |
| | |
| Over-the-Counter |
| The term "OTC" or "over-the-counter" refers to a market in which security transactions are... more |
| | |
| Over-the-Counter Bulletin Board |
| The "OTC Bulletin Board" or "Over-the-Counter Bulletin Board" refers to an electronic trading... more |
| | |
| Overallotment Option |
| The term "overallotment option" refers to the right of the underwriter in a registered public... more |
| | |
| Overbought/Oversold |
| The terms "overbought" or "oversold generally refer to stocks that are either viewed as priced too... more |
| | |
| Overdraft |
| An "overdraft" is a check written without sufficient funds to back it up. Such a check is also... more |
| | |
| Overdraft Protection |
| "Overdraft protection" is a service that allows a checking account owner to use a savings account... more |
| | |
| Owner Financing |
| "Owner financing" refers to a real estate purchase transaction in which the seller provides all or... more |
| | |
| P & L Statement |
| "P & L statement" generally refers to the profit and loss (or income) statement of a... more |
| | |
| P/E Ratio |
| A "P/E ratio" refers to a corporation's stock price divided by the past annual earnings... more |
| | |
| Paid-in Capital |
| "Paid-in capital" refers to the capital a corporation receives from investors in exchange for the... more |
| | |
| Paid-up Capital |
| "Paid-up capital" refers to the amount of capital contributed by stockholders into a... more |
| | |
| Paper Gain |
| "Paper gain" refers to unrealized gain on securities based on a comparison of current market price... more |
| | |
| Paper Loss |
| "Paper loss" refers to unrealized loss on securities based on a comparison of current market price... more |
| | |
| Paper Profit |
| "Paper profit" refers to unrealized gain on securities based on a comparison of current market... more |
| | |
| Par |
| The term "par" in connection with finance transactions refers to the nominal or face value of a... more |
| | |
| Parent Company |
| A "parent company" refers to a company that can control a majority-owned or 100% owned subsidiary... more |
| | |
| Pari-passu |
| "Pari passu" is a Latin term meaning "equal in all respects". In finance transactions, pari passu... more |
| | |
| Partnership |
| A "partnership" generally refers to a business enterprise between two or more persons who agree to... more |
| | |
| Partnership Agreement |
| A "partnership agreement" is a contract among persons or entities (known as partners) that spells... more |
| | |
| Passive Income |
| "Passive income" for tax purposes means income from business activities in which the taxpayer does... more |
| | |
| Passive Loss |
| "Passive loss" refers to loss from activities in which a taxpayer does not materially participate,... more |
| | |
| Patent Assignment |
| A "patent assignment" is a contract transferring (assigning) ownership of a patent to a third... more |
| | |
| Pay in Kind Security |
| A "pay-in-kind security" is a security (such as bonds or preferred stock) in which the interest or... more |
| | |
| Payday Loan |
| A "payday loan" typically refers to a small, short-term loan without a credit check that is... more |
| | |
| Paying Agent |
| A "paying agent" is an agent who makes principal and interest payments to holders of bonds on... more |
| | |
| Payment in Kind Bonds |
| "Payment in kind bonds" refer to bonds whose interest is paid through the issuance of additional... more |
| | |
| Payroll Tax |
| A "payroll tax" is tax in which employers are required to withhold from employees' paychecks.... more |
| | |
| PBGC |
| The "PBGC" or "Pension Benefit Guaranty Corporation" is the federal body functioning under the... more |
| | |
| Penny Stock |
| Generally, a "penny stock" refers to a stock traded over-the-counter at less than $1 a... more |
| | |
| Pension |
| A "pension" is a sum of money paid regularly usually as a retirement... more |
| | |
| Pension Benefit Guaranty Corporation |
| The "PBGC" or "Pension Benefit Guaranty Corporation" is the federal body functioning under the... more |
| | |
| Pension Fund |
| A "pension fund" is a fund set up to pay pension benefits of a company's workers after... more |
| | |
| Pension Plan |
| A "pension plan" refers to a plan established and maintained by an employer or union to provide for... more |
| | |
| Periodic Rate |
| The "periodic rate" generally refers to the monthly effective interest rate on a credit card. For... more |
| | |
| Personal Finance |
| The term "personal finance" generally refers to financial planning for an individual or family.... more |
| | |
| Personal Guarantee |
| A "personal guarantee" is contract whereby an individual or entity takes responsibility for payment... more |
| | |
| Personal Income |
| The term "personal income" refers to income received by individuals, from all sources including... more |
| | |
| Personal Property |
| "Personal property" refers to property that is not real property. Examples of personal property... more |
| | |
| Philanthropist |
| A "philanthropist" is an individual who practices philanthropy, i.e., the practice of donating... more |
| | |
| Philanthropy |
| "Philanthropy" is the practice of donating personal wealth to charitable or similar... more |
| | |
| Phishing |
| "Phishing" is a form of Internet or email fraud that aims to steal valuable user and financial... more |
| | |
| Piggy Back Registration |
| A "piggy back registration" is where a holder of shares of a corporation is included in a public... more |
| | |
| PIK |
| "PIK" stands for "pay-in-kind" and refers to interest or dividends on bonds or preferred stock,... more |
| | |
| PIK Dividends |
| "PIK dividends" generally refer to dividends paid on preferred stock that are paid through the... more |
| | |
| Pink Sheets |
| "Pink sheets" refers to an electronic quotation system that displays quotes from dealers for a... more |
| | |
| PMI |
| "Private mortgage insurance" or "PMI" is an insurance policy protecting the holder of a mortgage... more |
| | |
| Points |
| "Points" in connection with mortgage loans refers to the loan origination fee charged by lenders. A... more |
| | |
| Poison Pill |
| A "poison pill" often refers to provision in a corporation's articles of incorporation or... more |
| | |
| Policyholder |
| "Policyholder" typically refers to the holder of an insurance... more |
| | |
| Ponzi Schemes |
| "Ponzi schemes" or "pyramid schemes" are illegal fraudulent schemes in which people are recruited... more |
| | |
| Portfolio |
| A "portfolio" is a collection of assets held by an investor, such as bonds, stocks, options, and... more |
| | |
| Portfolio Income |
| "Portfolio income" refers to income from such sources as dividends, interest, capital gains, and... more |
| | |
| Portfolio Management |
| "Portfolio management" is the process of managing money and investments, with the goal of... more |
| | |
| Portfolio Manager |
| A "portfolio manager" is a professional who actively manages an investment portfolio (stocks,... more |
| | |
| Power of Attorney |
| A "power of attorney" is a written legal document that authorizes a person to act as an agent on... more |
| | |
| Pre-Approval Letter |
| A "pre-approval letter" is a document from a mortgage lender that indicates a potential home buyer... more |
| | |
| Pre-Emptive Right |
| A "pre-emptive right" is the right of a shareholder to purchase shares in future offerings of the... more |
| | |
| Pre-Incorporation Agreement |
| A "pre-incorporation agreement" is a contract between two or more parties that sets forth that a... more |
| | |
| Predatory Lending |
| "Predatory lending" refers to lending practices that are unfair and abusive. For example, a lender... more |
| | |
| Preferred Stock |
| "Preferred stock" is a security of a corporation that gives the holder a claim, prior to the common... more |
| | |
| Preferred Stock Purchase Agreement |
| A "preferred stock purchase agreement" is a contract where an investor purchases preferred stock in... more |
| | |
| Preliminary Prospectus |
| A "preliminary prospectus" is a preliminary document used in connection with a proposed public... more |
| | |
| Premium |
| The term "premium" can have multiple meaning, including (1) the payments made under an insurance... more |
| | |
| Prenuptial Agreement |
| A "prenuptial agreement" is a contract entered into by two people prior to marriage. Prenuptial... more |
| | |
| Prepackaged Bankruptcy |
| A "prepackaged bankruptcy" is where a company and its creditors agree to a plan of reorganization... more |
| | |
| Prepaid Interest |
| "Prepaid interest" is interest paid in advance of its due date. Prepaid interest is charged in... more |
| | |
| Prepayment |
| "Prepayment" refers to the payment of all or a portion of a loan before its maturity date. Some... more |
| | |
| Prepayment Penalty |
| A "prepayment penalty" is a fee imposed by a lender in the event a loan is paid off before its... more |
| | |
| Prepayment Risk |
| "Prepayment risk" refers to the risk a borrower will prepay a mortgage or other loan (typically... more |
| | |
| Press Release |
| A "press release" is a public relations announcement by a company distributed to newspapers and... more |
| | |
| Price-Earnings Ratio |
| A "P/E ratio" refers to a corporation's stock price divided by past ("trailing") annual... more |
| | |
| Prime Rate |
| The "prime rate" is typically defined to mean the interest rate at which financial institutions... more |
| | |
| Principal Residence |
| A "principal residence" is the dwelling that a person lives in most of the time during... more |
| | |
| Privacy Policy |
| A "privacy policy" is a Web site's official statement on the type of user information it... more |
| | |
| Private Foundation |
| A "private foundation" is a nonprofit organization established and supported primarily by private... more |
| | |
| Private Investment Fund |
| A "private investment fund" is a fund primarily engaged in investing in securities, but, where the... more |
| | |
| Private Letter Ruling |
| A "private letter ruling" is a ruling by the Internal Revenue Service in response to a written... more |
| | |
| Private Mortgage Insurance |
| "Private mortgage insurance" or "PMI" is an insurance policy protecting the holder of a mortgage... more |
| | |
| Private Placement |
| A "private placement" is the offer and sale of securities to a limited group of investors without... more |
| | |
| Private Placement Memorandum |
| A "private placement memorandum" is a document that lays out the details of a securities investment... more |
| | |
| Probate |
| "Probate" is the legal process where a deceased's estate is administered and the assets from... more |
| | |
| Profit Warning |
| A "profit warning" is a statement by a publicly held company that its earnings will not be meeting... more |
| | |
| Promissory Note |
| A "promissory note" is a contract obligating one party to pay or repay a specified dollar amount to... more |
| | |
| Property |
| "Property" refers to assets of some kind, typically broken down into real property (homes,... more |
| | |
| Property Insurance |
| "Property insurance" is insurance that provides financial protection against the loss of, or damage... more |
| | |
| Property Management Agreement |
| A "property management agreement" is a contract between an owner of real estate and a person or... more |
| | |
| Property Tax |
| "Property tax" is a tax imposed by a state, city or municipality on real property based on its... more |
| | |
| Prospectus |
| A "prospectus" is a formal disclosure document used to sell securities, describing the issuer of... more |
| | |
| Proxy |
| A "proxy" is a written authorization from a stockholder that empowers someone to vote on the... more |
| | |
| Proxy Materials |
| "Proxy materials" are the documents used by corporations to solicit votes for corporate decisions,... more |
| | |
| Proxy Statement |
| A "proxy statement" is a document prepared by a corporation for dissemination to its stockholders,... more |
| | |
| Public Company |
| A "public company" is a company whose shares are traded on a stock exchange or in the... more |
| | |
| Public Offering |
| A "public offering" refers to the offering of securities by a company or organization to the public... more |
| | |
| Public Offering Price |
| A "public offering price" is the price offered to the public for new securities to be issued in a... more |
| | |
| Put |
| A "put," in the financial context, is an option giving the holder the right to sell an underlying... more |
| | |
| Put Bond |
| A "put bond" is a bond that gives the holder the right to require the issuer of the bond to redeem... more |
| | |
| Put Option |
| A "put option" is a financial instrument that gives the holder right to sell a given stock (or... more |
| | |
| Pyramid Scheme |
| "Pyramid schemes" or "Ponzi schemes" are illegal fraudulent schemes in which people are recruited... more |
| | |
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